Lockheed Martin NYSE:LMT has emerged as the frontrunner to acquire Ultra Maritime, Advent's naval technology division specializing in anti-submarine warfare, for roughly $3.5 billion. An agreement could be announced as early as next week, per the Financial Times, though talks are ongoing and no deal has been formally agreed. Other U.S. and European defense bidders remain in the running as part of a competitive auction.
Ultra Maritime manufactures undersea defense technology including buoys that detect torpedoes and submarines, used by the U.S. Navy and Britain's Royal Navy. Revenue is on track to reach approximately $784 million in 2026, up from $494 million in 2023, after Advent invested roughly $170 million in product development over the past three years. The unit employs around 2,000 people across the Five Eyes intelligence-sharing alliance. Last year, Ultra Maritime struck a partnership with Anduril Industries to develop next-generation anti-submarine technology combining autonomous subsea vehicles with Ultra Maritime's sensors.
The potential acquisition fits Lockheed's push into undersea warfare capabilities at a moment when the U.S. government is pressing prime contractors to expand weapons production. Lockheed CEO James Taiclet recently met with President Trump alongside other defense industry executives. The company reports Q2 earnings on July 23, where the deal status could feature in management commentary.